AI Wild Swings and Tech Rally Lifts Major Averages to Best First Half Returns In Five Years

Barry Adams
30 Jun, 2026
New York City

Stocks in New York advanced on Tuesday, and benchmark indexes are set to close out the solid first half and second quarter amid lingering uncertainty in the energy markets. 

The S&P 500 Index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2% as investors reassessed the need for an elevated level of investment in AI infrastructure. 

In the first half, the S&P 500 Index advanced 8%, and the tech-heavy Nasdaq Composite jumped 11%, and major averages created new highs despite the ongoing war in the Middle East and uncertainty over AI infrastructure spending. 

However, market indexes rebounded in the second quarter as fears over the prolonged closure of the Strait of Hormuz eased and investor jitters subsided over the elevated level of AI spending.

Caution still prevailed, and hyperscalers like Alphabet, Meta Platforms, Microsoft, and Oracle dropped as much as 20% from the highs reached in early June. 

Moreover, memory makers continued to scale new highs, and SanDisk, Micron Technology, Marvell Technology, and Seagate booked triple-digit returns in the first half. 

 

U.S. Movers 

Digital Realty Trust dropped 4.5% to $181.99, and the company agreed to acquire a stake in three data centers from Blackstone for $3.5 billion. 

The company agreed to pay $1.2 billion in cash and $2.3 billion in stock for data centers in Northern Virginia. 

Digital Realty will acquire Blackstone's 80% stake in two 96-megawatt data centers in Manassas, Virginia, and a 50% stake in a similar-sized facility in Sterling, Virginia. 

Kering SA decreased 6.5% to €249.50 after the luxury group reiterated its annual outlook in a call with analysts ahead of its quarterly results on July 28. 

However, the recently appointed CEO Luca de Meo highlighted a challenging macro environment, and disruptions in the Middle East and persistent weakness in China continue to drag on its overall revenues.